Bitcoin Surmounts Technical Barrier, Correlation with Gold Reaches Six-Year High
Bitcoin has broken through a significant technical barrier, surpassing its 50-week moving average at $81K. This milestone, noted by Galaxy Research, marks the first time BTC has risen above this line since late 2025, when it rapidly fell from $126K to $60K.
Investors are increasingly turning to Bitcoin and gold as a hedge against currency depreciation. According to Bitwise, the correlation between the leading cryptocurrency and the precious metal has reached a six-year high. This trend is not limited to just these two assets, as BTC's link to stock indices has almost been severed.
Bitwise's Chief Investment Officer, Matt Hogan, views Bitcoin as a safeguard against rising US government debt. He recommends that investors hold both BTC and shares in artificial intelligence companies in their portfolios. Anthony Pompliano, CEO of ProCap Financial, echoes this sentiment, suggesting that a combination of Bitcoin and AI would make for an ideal investment portfolio.
ETFs and companies with crypto reserves have already helped channel funds into the crypto market in previous years. Wintermute believes that tokenized real-world assets (RWAs) could be the next source of liquidity for cryptocurrencies.